Tenant referencing has become more rigorous since the Renters’ Rights Act came into force. This change is partly due to the abolition of Section 21 on 1st May, which means landlords must now have a valid ground for possession and follow a proper process to regain their property.
This shift has led landlords and agents to be more cautious when assessing potential tenants. They are increasingly scrutinising affordability, employment history, credit checks, and previous landlord references.
However, some in the industry are questioning whether this stricter approach is becoming too rigid. Concerns have been raised that a blunt pass or fail system, without considering individual circumstances, could lead to suitable applicants being rejected if they do not fit standard criteria.
Becky Clarke, co-founder of Amhurst Lettings, suggests that while thorough due diligence is important, a more nuanced approach is needed. This would involve understanding inconsistencies in applications and considering the full picture, rather than relying solely on standard metrics.